NZD/USD is down by over 1% as RBNZ rate cut bets rise
The aussie and kiwi have been the classic epitomes of 'don't catch the falling knife' in trading this year and that continues to be the case even as we see the former hit eleven-year lows while the latter is moving towards its October lows today.
NZD/USD has been hammered as RBNZ rate cut odds are rising quite significantly, up to ~47% now from just about ~25% yesterday for the 25 March meeting.
Coronavirus fears have taken over the market in a rather dramatic way this week and the risk tumble over the past few days shows that the market is starting to possibly price in a global recession of some sort if this keeps up.
For the kiwi, watch out for the 1 October 2019 low at 0.6204. If that gives way, it could trigger more stops on the way down for the pair with the 2015 low of 0.6130 next in line.
